Wednesday, October 21, 2009
Discount retail chains erode publishers' business models
Wal-Mart, Target, and Sears are drawing Amazon into a book-pricing war that could be harmful to publishers (especially self-publishers), according to a story by Stephen Lowman in the Washington Post, Wednesday Oct. 21, p. 19A, link here. The title of the story is “Amazon, discounters in book-pricing war; Wal-Mart fires first, online giant responds, then Target enters fray”.
The strategy of the lowballing on book prices is to draw customers into adding other higher profit margins, like clothing, to their shopping carts.